Method and apparatus for providing insurance policies for gambling losses

ABSTRACT

A system and method for providing a gambling loss insurance policy automatically computes insurance premiums and processes gambling sessions covered by the gambling loss insurance policies. The players may purchase the insurance policies using various means such as coins, earned winnings, or credit cards. The gambling loss insurance system provides a high level of flexibility for the players to define specific parameters of the insurance policy. Additionally, the players may purchase the insurance policies directly from the gaming machine, a custom terminal on casino floor, or cage personnel having access to a centralized network server.

The present application is a continuation of U.S. application Ser. No.11/008,554, filed Dec. 9, 2004, which is a continuation-in-part of U.S.patent application Ser. No. 10/365,154, entitled “Method And ApparatusFor Providing Insurance Policies For Gambling Losses”, filed Feb. 11,2003 and issued as U.S. Pat. No. 6,869,362 on Mar. 22, 2005;

which is a continuation-in-part of U.S. patent application Ser. No.09/816,017, entitled “System and Method for Generating and ExecutingInsurance Policies for Gambling Losses”, filed on Mar. 23, 2001 andissued as U.S. Pat. No. 6,561,903 B2 on May 13, 2003;

which is a continuation of U.S. patent application Ser. No. 09/168,398entitled “System and Method for Generating and Executing InsurancePolicies for Gambling Losses”, filed on Oct. 6, 1998 and issued as U.S.Pat. No. 6,254,482 B1 on Jul. 03, 2001;

which is a divisional of U.S. patent application Ser. No. 08/804,060entitled “System and Method for Generating and Executing InsurancePolicies for Gambling Losses”, filed on Feb. 21, 1997 and issued as U.S.Pat. No. 6,113,493 on Sep. 05, 2000.

The content of each of these applications is incorporated herein byreference.

CROSS-REFERENCE TO RELATED APPLICATIONS

The present application is related to U.S. patent application Ser. No.11/423,166 filed on Jun. 9, 2006 in the name of Walker et al. andentitled “Method and Apparatus For Providing Insurance Policies ForGambling Losses”.

The present application is related to U.S. patent application Ser. No.11/423,168 filed on Jun. 9, 2006 in the name of Walker et al. andentitled “Method and Apparatus For Providing Insurance Policies ForGambling Losses”.

The present application is related to U.S. patent application Ser. No.11/423,171 filed on Jun. 9, 2006 in the name of Walker et al. andentitled “Method and Apparatus For Providing Insurance Policies ForGambling Losses”.

The present application is related to U.S. patent application Ser. No.“______”(04-059-C4) filed concurrently herewith in the name of Walker etal. and entitled “Method and Apparatus For Providing Insurance PoliciesFor Gambling Losses”.

The present application is related to U.S. patent application Ser. No.“______”(04-059-C5) filed concurrently herewith in the name of Walker etal. and entitled “Method and Apparatus For Providing Insurance PoliciesFor Gambling Losses”.

The present application is related to U.S. patent application Ser. No.“______”(04-059-C6) filed concurrently herewith in the name of Walker etal. and entitled “Method and Apparatus For Providing Insurance PoliciesFor Gambling Losses”.

The present application is related to U.S. patent application Ser. No.“______”(04-059-C7) filed concurrently herewith in the name of Walker etal. and entitled “Method and Apparatus For Providing Insurance PoliciesFor Gambling Losses”.

The present application is related to U.S. patent application Ser. No.“______”(04-059-C8) filed concurrently herewith in the name of Walker etal. and entitled “Method and Apparatus For Providing Insurance PoliciesFor Gambling Losses”.

The present application is related to U.S. patent application Ser. No.“______”(04-059-C9) filed concurrently herewith in the name of Walker etal. and entitled “Method and Apparatus For Providing Insurance PoliciesFor Gambling Losses”.

The present application is related to U.S. patent application Ser. No.“______”(04-059-C11) filed concurrently herewith in the name of Walkeret al. and entitled “Method and Apparatus For Providing InsurancePolicies For Gambling Losses”.

The present application is related to U.S. patent application Ser. No.“______”(04-059-C12) filed concurrently herewith in the name of Walkeret al. and entitled “Method and Apparatus For Providing InsurancePolicies For Gambling Losses”.

BACKGROUND OF THE INVENTION

The present invention relates generally to gambling systems, and moreparticularly to a system and method for generating and executinginsurance policies for gambling losses.

Gambling at casinos has long been a popular activity. Casinos offer awide variety of games such as slot machines and table games. Some of themore common slot machines include standard reel machines, video poker,and keno machines. A conventional slot machine operates when a playerinserts one or more coins, bills, or tokens into a coin acceptor andplays the game by pulling a handle or pushing a button. In manyinstances, the slot machines are connected to a network with acentralized tracking system.

Regardless of the particular type of game, gambling generally exposesthe players to unpredictable gambling losses. Once a player startsgambling, it is sometimes hard for the player to keep accurate track ofthe amount of gambling losses, and even players that can do so sometimesfind it hard to control the urge to continue playing. Thus, gambling mayresult in a substantial financial loss to the player.

It is known in the art to provide insurance policies against certaintypes of gambling losses. One system for providing such gambling lossinsurance is described in U.S. Pat. No. 5,178,390 (Okada). This patentdescribes a slot machine that offers insurance by having the playerinsert coins into a coin acceptor dedicated to insurance payments.Thereafter, the slot machine provides a payout to the player dependingon whether the machine has paid any jackpots over a given number ofhandle pulls. The payout, however, is not directly related to the amountof gambling losses, and the insurance protection applies only to aparticular machine from which the insurance was purchased. Therefore,the player not only has limited flexibility in defining the policyrequirements, the player must play at a particular machine during theentire insurance coverage period.

Another patent, U.S. Pat. No. 4,669,731 (Clarke), teaches a slot machinethat pays out to the player when a predetermined number of consecutivegames are lost. Similar to the Okada patent, however, the protection isnot transferable between various slot machines, and the player cannotdefine the requirements of the protection, such as amount of losses.

Accordingly, not only are these systems restrictive in defining the typeand scope of the insurance protection, they do not offer avenues forindividuals to play different types of games at different locationsunder a single insurance coverage. Instead, the players must purchasethe insurance at the particular machine at which they will playthroughout the entire insurance coverage period. Additionally, once theplayer initiates the insurance period, the player does not have anoption to suspend the gambling session. Thus, these systems not onlyprovide limited protection against gambling losses, they alsosignificantly limit the games that may be played while covered by aninsurance policy.

Therefore, it is desirable to provide protection against unpredictablegambling losses with flexible insurance policies.

It is also desirable to offer insurance protection enabling players thefreedom to move between slot machines while maintaining a high level ofplaying enjoyment.

It is further desirable to provide a method of procuring gambling lossinsurance through commonly accessible means such as credit cards.

SUMMARY OF THE INVENTION

Systems and methods consistent with the present invention automaticallydetermine appropriate premiums for gambling insurance policies, andprovide convenient distribution and administration of those policies.

Specifically, a system for providing a gambling loss insurance policyconsistent with this invention comprises a game terminal and a gameserver. The game terminal includes processing means, user input means,and a display. The processing means executes a game. The user inputmeans receives a user ID, game information, and policy requirements forthe gambling insurance policy. The display displays game results andinformation relating to the gambling insurance policy. Moreover, thegame server includes a receiving means, a determining means, and atransmitting means. The receiving means receives the policy requirementsfrom the game terminal and the determining means determines a premiumcost based on the policy requirements. Finally, the transmitting meanstransmits the premium cost to the user.

A method for providing a gambling loss insurance policy consistent withthis invention comprises several steps. Initially, a game terminalreceives a user ID and policy requirements for the gambling insurancepolicy from the user. The game terminal transmits the user ID and thepolicy requirements to a game server, which then determines a premiumcost based on the policy requirements. Finally, the game servertransmits the cost of the premium to the user at the game terminal.

BRIEF DESCRIPTION OF THE DRAWINGS

The accompanying drawings, which are incorporated in and constitute apart of this specification, illustrate the invention, and together withthe description serve to explain the principles of the invention.

FIG. 1 is a block diagram of a gaming system consistent with the presentinvention;

FIG. 2 is a detailed block diagram of the network server in FIG. 1;

FIG. 3 is a table illustrating the data structure of a player databasein the data storage device of FIG. 2;

FIG. 4 is a table illustrating the data structure of an insurancedatabase in the data storage device of FIG. 2;

FIG. 5 is a detailed block diagram of the slot machine in FIG. 1;

FIG. 6 is a flowchart illustrating a preferred process for selectingpolicy requirements;

FIG. 7 is a flowchart illustrating a preferred process for calculatingan insurance premium;

FIG. 8 is a flowchart illustrating a preferred process for finalizingthe purchase of the insurance policy;

FIG. 9 is a flowchart illustrating a preferred process for systemmaintenance of active insurance policies;

FIG. 10 is a flowchart illustrating a preferred process for processing agambling session covered under the insurance policy;

FIG. 11 is a flowchart illustrating a preferred process for determiningwhether an insurance adjustment is necessary pursuant to the results ofthe gambling session of FIG. 10; and

FIG. 12 is a flowchart illustrating a preferred process for transmittinga payout to the player.

DETAILED DESCRIPTION

Reference will now be made in detail to preferred embodiments consistentwith the invention, examples of which are illustrated in theaccompanying drawings.

System Architecture

FIG. 1 shows a gaming system consistent with the present inventionhaving a network server 200 and a slot machine 500. Slot machine 500 isonly one example of a gaming machine, and one skilled in the art mayeasily substitute slot machine 500 with other types of gaming machines.Network server 200 is preferably a conventional server computer and slotmachine 500 is a conventional slot machine. Although FIG. 1 shows onlyone slot machine 500 connected to network server 200, several slotmachines 500 and/or other gaming machines may connect to network server200.

In operation, slot machine 500 transmits to network server 200information such as player ID number, policy requirements, insurancepremiums, and gambling results. Network server 200 transmits to slotmachine 500 information such as insurance premium and payout data.

FIG. 2 shows a detailed block diagram of network server 200. Networkserver 200 preferably includes a central processing unit (CPU) 205, acommunication port 210, a random access memory (RAM) 215, a read-onlymemory (ROM) 220, a clock 225, and a data storage device 240. All ofthese later elements are connected to CPU 205 to facilitate theoperation of server 200.

In the example shown, network server 200 receives and transmitsinformation using an interface 230. Server 200 may be configured in manydifferent ways. For example, network server 200 may be a conventionalserver computer such as an RS 6000 manufactured by IBM Corporation.Alternatively, the function of server 200 may be distributed acrossmultiple computing systems as described below.

Data storage device 240 may include a hard magnetic disk drive, opticalstorage units, CD-ROM drives, or flash memory. In one embodiment,database software such as Oracle7, manufactured by Oracle Corporation,creates and manages these databases. Data storage device 240 containsdatabases used in processing transactions in accordance with the presentinvention, including a player database 245 and an insurance database250. Insurance premium calculation algorithms (not shown) are preferablystored in storage device 240 and executed by CPU 205.

FIG. 3 shows an example of the organization of player database 245,which maintains data about the players. Database 245 includes multiplerecords 245 a-c, each record including fields specific to a player, suchas name, player ID, address, credit card number, credit card expirationdate, earned payout, preferred payment method, and insurance policytracking number.

FIG. 4 shows an example of the organization of insurance database 250,which maintains data on insurance policies generated by the players.Database 250 includes multiple records 250 a-c, each record includingfields specific to a player such as player ID, policy tracking number,coverage type, premium amount, loss threshold, coverage period, coverageamount, status, and gambling session results.

Interface 230 connects network server 200 to a network of slot machines500 and/or other gaming machines. Interface 230 also connects tocommunications port 210.

Network server 200 may also be configured in a distributed architecture,wherein databases and processors are housed in separate units orlocations. Some such servers perform primary processing functions andcontain at a minimum, a RAM, a ROM, and a general processor. In such anembodiment, each of these servers is attached to a wide-area network(WAN) hub that serves as a primary communication link with the otherservers and gaming machines. The WAN hub may have minimal processingcapability itself, serving primarily as a communications router.

FIG. 5 shows a detailed block diagram of slot machine 500. Interface 230connects slot machine 500 to network server 200. Slot machine 500includes a CPU 505 connected to a RAM 510, a video display area 515, aROM 520, a reel controller 525, a player card tracking device 530, arandom number generator 535, a starting controller 540, interface 585, adata storage device 550, a hopper controller 565, hopper 570, anoperating system 575 (typically comprising software stored in memory),and a clock 580. Data storage device 550 includes a probability table555 and a payout table 560.

Slot machine 500 operates in a conventional manner. The player startsthe machine by inserting a coin or using electronic credit, andinitiating starting controller 540. Under control of a program stored,for example, in data storage device 550 or ROM 520, CPU 505 directsrandom number generator 535 to generate a random number. CPU 505 looksup the generated random number in stored probability table 555 and findsthe corresponding outcome. Based on the identified outcome, CPU 505locates the appropriate payout in the stored payout table 560. CPU 505also directs reel controller 525 to spin reels 526, 527, 528 and to stopthem at a point when they display a combination of symbols correspondingto the selected payout. When the player wins, the slot machine 500stores the credit balance in RAM 510, and displays the balance in videodisplay area 515.

Hopper controller 565 is connected to hopper 570 for dispensing coins.When the player requests to cash out by pushing a button on slot machine500, CPU 505 checks RAM 510 to see whether the player has any creditsand, if so, signals hopper controller 565 to release an appropriatenumber of coins into a coin tray (not shown).

In alternative embodiments, slot machine 500 does not include reelcontroller 525, and reels 526, 527, 528. Instead, video display area 515graphically displays simulated representations of objects contained inthe selected game, such as graphical reels or playing cards. Theserepresentations are preferably animated or displayed to simulate playingof the selected game.

Player card tracking device 530 includes display 531 and card reader532. Players insert player tracking cards into card reader 532. Trackingcards can be plastic cards with magnetic strips electronically storingrespective player ID numbers. Display 531 displays informationconcerning the use of player card tracking device 530, and allowscommunications to be displayed to the player regarding insurance policyrequirements. Display 531 may be a touch screen display for receivingsignals from the player concerning the selection of the requirements.

Alternatively, slot machine 500 or player card tracking device 530 mayinclude one or more separate input buttons (not shown) for the playersto select the policy requirements and provide other input such as a PIN.Credits earned during play are stored locally in RAM 510 and displayedin video display area 515. Slot machine 500 or player card trackingdevice 530 could also include one or more separate input devices forselecting the policy requirements.

In other embodiments, slot machine 500 recognizes the identity ofplayers through player identification devices other than player cardtracking device 530, thereby eliminating the need for players to carryplayer identification cards. For example, slot machine 500 could includea keypad, at which players enter either their player identificationnumbers or their names along with a secured password. Slot machine 500could also include a device for measuring player biometrics (e.g.,fingerprint, voice, or retinal detection) to identify players.

Commercially available player card tracking devices include, forexample, the Mastercom device available from Bally Manufacturing. (See,for example, U.S. Pat. No. 5,429,361 to Raven et al.). Such playertracking devices include a magnetic card reader and a numeric keypad forentry of player information.

System Operation

In one embodiment of this invention, a player registers in advance, forexample, at a cashier's station, and obtains a tracking card. Thetracking card may be a magnetically coded tracking card generally usedat casinos, a stored value card, or other form of smart card. In thepreferred embodiment, only the player ID number is stored on the playertracking card for security reasons. However, other types of information,such as monetary value, can also be stored on the player tracking card.

During registration, the player provides the various player informationshown in FIG. 3, such as name, address, credit card number, and creditcard expiration date. The casino assigns each player a unique numeric IDnumber. The player also provides preferred payment methods to define thepreferred methods of receiving payouts under the policy which will bedescribed in detail below. Additionally, the system maintains anindication of whether the player has an insurance policy. The playerregistration, as well as the purchase of insurance described below, mayalso take place at slot machine 500 or any game machine having aninteractive interface.

FIG. 6 illustrates a process consistent with this invention forpurchasing gambling loss insurance. Initially, the player inserts thetracking card into slot machine 500 (step 600). Card reader 532 ofplayer card tracking device 530 reads the player ID stored on the playertracking card, and player card tracking device 530 transmits the playerID to network server 200 (step 610). Network server 200 looks up theplayer ID number in player database 245 and checks to see whether theplayer has an existing insurance policy (step 620). If the player has anexisting policy, the player may either initiate a gambling session underthat policy or purchase another policy.

Regardless of whether the player has a policy, display 531 presents tothe player information giving the player an option to purchase a new oradditional gambling loss insurance, at which point the player may electto establish an insurance policy (step 630). Policy requirements may beestablished in various ways: entering data directly into a key padattached to slot machine 500; entering data into a custom terminal on acasino floor; providing data to a cashier who enters the requirementsdirectly into network server 200; or entering the data using atelephone, which then transmits the data to network server 200. For thisembodiment, it will be assumed the insurance policy is purchased fromslot machine 500.

Next, the player defines the type of coverage by establishing policyrequirements of the insurance policy (step 640). The player determinesthe loss at which the insurance policy pays a claim, the amount of eachbet, and the time period over which the insurance policy is in effect.

There are a number of ways in which the amount of coverage can bedescribed (step 650). For example, an insurance policy with a statedloss limit of five hundred dollars provides a payment to the player ifhis losses for the covered gambling session exceed five hundred dollars.The payment could be made if losses exceed five hundred dollars at anytime throughout the session, or only if losses exceed five hundreddollars at the conclusion of the covered gambling session.Alternatively, a graduated insurance payout scale could allow forinsurance payouts to increase as the size of the loss increases. Ratherthan specifying an amount of loss, the insurance policy could insteaddescribe a rate of loss, such as one hundred dollars per hour. Anyinsured gambling session in which losses exceeded one hundred dollarsfor a given one hour period would result in an insurance payout. Lossamounts could also represent a fraction of the amount of money gambledduring the insured session. A forty percent loss limit, for example,would trigger an insurance payout when losses for the session exceedforty percent of the total amount bet during the session.

The player next describes the amount of each bet over the insured period(step 660). A slot machine player, for example, might indicate that heis playing a dollar machine and that he is playing three coins perhandle pull. The player may also specify the type of slot machine thathe is going to play in order to provide basic information about thestandard deviation of the outcomes to the server.

After establishing an amount of loss to be covered, the player selectsthe coverage time of the policy (step 670). For example, the insurancepolicy could specify a start and stop time. Any gambling within thistime window is covered by the policy. Alternatively, the player couldselect a number of handle pulls so that the insurance period is based onactivity rather than time. For example, the player may establish apolicy to cover the next one thousand handle pulls.

Insurance payouts can take a number of different forms. They can be afixed dollar amount, a fraction of all losses above the loss limit, or anumber of free plays on the machine.

Network server 200 stores the player selected coverage type and theselected loss threshold in insurance database 250. Slot machine 500 thentransmits the policy requirements to network server 200 through networkserver interface 545.

FIG. 7 is a flowchart illustrating a process for calculating a premiumcost consistent with this invention. First, network server 200 storesthe policy requirements received from slot machine 500, along with theplayer ID, in insurance database 250 (step 700). CPU 205 accesses apremium calculation algorithm pre-stored in storage device 240 (step710), and computes the premium costs based on the policy requirements(step 720). Although many different algorithms may be used to calculatethe premium costs, insurance policies having a high level of protectionwill generally require higher premiums. If all else is equal, thepremium amount increases as the amount of the insurance payoutincreases. An insurance policy which pays fifty dollars for any lossgreater than five hundred dollars over a one hour period will generallycost twice as much as a policy which pays twenty five dollars for thesame loss profile.

As loss limits increase, the premium amount declines, reflecting thedecreased probability that the player loss will trigger an insurancepayout.

Greater gambling activity will of course necessitate relatively higherinsurance premiums. A doubling of the time period of coverage, forexample, will increase the premium amount (although not necessarilylinearly). Higher bet amounts per handle pull will also result in higherpremium amounts. Insurance policies written on machines with relativelyhigh payout variance will also require higher insurance premiums.

Once calculated, network server 200 transmits the premium cost to slotmachine 500 (step 730) which then displays the premium cost on display531 (step 740).

FIG. 8 is a flowchart illustrating a process consistent with theinvention for finalizing the purchase of an insurance policy. The playerevaluates the premium cost shown on display 531 and decides whether thepremium is acceptable (step 800). If the premium is not acceptable tothe player (step 810), the player may develop new policy requirements(step 820). For example, if the premium is too high, the player mayincrease the loss amount covered or shorten the time period covered bythe policy. Network server 200 then calculates a new premium based onthe modified policy requirements (step 825), as described in connectionwith FIG. 7. This new premium amount if then transmitted to slot machine500 for display to the player.

If the premium is acceptable to the player (step 810), the playertransmits an acceptance to network server 200, providing a confirmationto purchase the specified insurance policy (step 830). Network server200 stores the premium amount in the premium amount field of insurancedatabase 250. Next, network server 200 generates a tracking number andappends it to the insurance policy record as shown in FIG. 4 (step 840).Network server 200 receives the premium from the player by directlydebiting the player's credit card account, accepting coins deposited bythe player, or debiting the player's winnings accrued at slot machine500 (step 850). Once sufficient payment is received for the premium,network server 200 stores the insurance policy record in insurancedatabase 250 (step 855). At this point, network server 200 sets thestatus field of the insurance policy in insurance database 250 to“active” and adds the insurance policy tracking number to playerdatabase 245. Network server 200 also issues a policy tracking numberand stores it in insurance database 250.

Network server 200 also performs maintenance checks to ensure that onlyactive insurance policies are stored in insurance database 250. FIG. 9is a flowchart illustrating a preferred process for maintaining activeinsurance policies. First, network server 200 makes periodic searchesthrough insurance database 250, retrieving the coverage period of eachinsurance policy (step 900). CPU 205 checks whether the insurance hasexpired by comparing the coverage period with the current date and time(step 910). If the current date and time are beyond the coverage period,network server 200 changes the status field of the insurance policy from“active” to “expired” in insurance database 250 (step 920). Thiscompletes the insurance policy maintenance (step 930). For insurancepolicies with a period of coverage defined by number of handle pulls,CPU 205 checks to see whether the number of outcomes received exceedsthe amount of coverage.

Once an “active” insurance policy is stored in insurance database 250,the player may conduct an insured gambling session under the insurancepolicy as shown in FIG. 10. To begin an insured gambling session, theplayer inserts the player tracking card into player card tracking device530 of slot machine 500 (step 1000). Slot machine 500 then transmits theplayer ID number stored on the player tracking card to network server200 (step 1010). If network server 200 determines that the player has anactive insurance policy in insurance database 250, CPU 205 of networkserver 200 starts storing the player's gaming results in the resultsfield of insurance database 250.

During a gaming session at slot machine 500, the player may choose totake a break and temporarily suspend the session without decreasing thecoverage period. Additionally, the player is free to relocate to anothermachine or play a different game. To do so, the player simply selects a“suspend” option, at which point slot machine 500 transmits the currentsession record to network server 200. Thereafter, a new session recordis initiated at another gaming machine. Regardless of the gamingmachine, slot machine 500 transmits the tracked session record tonetwork server 200 for processing at the end of each gaming session(step 1020).

When network server 200 receives the session record from slot machine500, it processes the data under the insurance policy. FIG. 11 is aflowchart illustrating a preferred process for determining whether aninsurance adjustment is necessary. First, network server 200 searchesinsurance database 250 for the player ID (step 1100). If the player IDnumber is not found in insurance database 250 (step 1110), no insuranceadjustment is necessary because the player does not have an activepolicy (step 1120).

If the player ID is found in insurance database 250, network server 200accesses insurance database 250 to see whether the insurance policy iscurrently active (step 1130). If the insurance policy is not currentlyactive, no insurance adjustment is necessary, and the player isappropriately notified (step 1140). If the insurance policy is “active,”however, and if these gambling results conclude the coverage periodspecified in the insurance policy, an insurance adjustment, or payout,is necessary (step 1150). Additionally, the result field in insurancedatabase 250 is updated with the current slot machine session result(step 1160).

FIG. 12 is a flowchart illustrating a preferred process for transmittingan insurance payout to the player. To make a payout, network server 200first analyzes the results stored in the gambling session results fieldof insurance database 250 (step 1200). If the loss does not exceed theloss threshold stored in insurance database 250, no insurance adjustmentis necessary. If the loss meets or exceeds the specified threshold, CPU205 of network server 200 calculates an appropriate insurance payoutamount due the player according to the insurance policy requirements(step 1210). Once the insurance payout amount is calculated, the payoutis made according to the method specified in the complimentaryinformation field of player database 245.

In the preferred embodiment, network server 200 updates the earnedpayout field of player database 245 (step 1220). Thereafter, the playermay collect the insurance payout at any time at a cashier's station(step 1230). Paying the player at a location away from a gaming machineor table game helps discourage players from immediately spending thepayout and may be a preferred option amongst the players. Alternatively,the player may choose to transfer the payout directly to his creditcard. In that case, network server 200 directly credits the player'scredit card by the amount of the payout. Additionally, the player maychoose to transmit the payout directly to slot machine 500, in whichcase the compensation is disbursed through the payout tray of slotmachine 500. Regardless of the payout method, network server 200 updatesinsurance database 250 to reflect that a payment has been made.

Conclusion

Systems and methods consistent with the present invention providegambling loss insurance policies to players and offer protection againstunpredictable gambling losses. Additionally, such systems and methodsprovide a way of automatically processing gambling sessions covered bythe gambling loss insurance policies.

It will be apparent to those skilled in the art that variousmodifications and variations can be made in the present invention and aconstruction of the invention without departing from the scope or spiritof the invention. Other embodiments of the invention will be apparent tothose skilled in the art from consideration of the specification andpractice of the invention disclosed herein. The specification andexamples should be considered as exemplary only, with the true scope andspirit of the invention indicated by the following claims.

1. A method comprising: determining a player identifier; determiningwhether an insurance policy comprising at least one term and associatedwith with the player identifier is active; transmitting at least onegambling result for the player from a gaming device to a network server;determining, at the network server, an amount of losses associated withthe at least one gambling result; determining how much of the amount oflosses are covered by the insurance policy; and determining a refundbased on the amount of losses and the at least one term of the insurancepolicy.
 2. The method of claim 1 wherein determining a player identifiercomprises one or more of: receiving a player tracking card, receivinginput of a player code, and receiving a player biometric.
 3. The methodof claim 1 further comprising providing the refund to the player.
 4. Themethod of claim 3 wherein providing the refund comprises providing therefund at a cashier station.
 5. The method of claim 3 wherein providingthe refund comprises providing the refund at the gaming device.
 6. Themethod of claim 3 wherein providing the refund comprises providing therefund as a credit to an electronic account associated with the player.7. The method of claim 3 wherein providing the refund further comprisesdetermining a preferred manner in which to provide the refund.
 8. Themethod of claim 7 wherein determining the preferred manner comprisesreferencing player preferences associated with the player.
 9. The methodof claim 1 wherein determining the player identifier comprises receivingan input through a keypad.
 10. The method of claim 1 wherein determiningwhether the insurance policy is active comprises referencing a database.11. The method of claim 1 wherein determining whether the insurancepolicy is active comprises referencing at least one of: aplayer-tracking database and an insurance policy database.
 12. Themethod of claim 1 wherein determining whether the insurance policy isactive comprises determining at a network server whether the insurancepolicy is active.
 13. The method of claim 1 wherein determining whetherthe insurance policy is active comprises referencing a computer readablememory.
 14. A system comprising: a processor adapted to: determine aplayer identifier; determine whether an insurance policy comprising atleast one term and associated with the player identifier is active;transmit at least one gambling results for the player from a gamingdevice to a network server; determine, at the network server, an amountof losses associated with the gambling results; determine how much ofthe amount of losses are covered by the insurance policy; and determinea refund based on the amount of losses and the at least one term of theinsurance policy.
 15. A method comprising: determining a playeridentifier; determining whether an insurance policy comprising at leastone term and associated with the player identifier is active based atleast in part by detecting whether a player has used a player trackingdevice adapted to communicate the player identifier; determining anamount of losses associated with the gambling results; determining howmuch of the amount of losses are covered by the insurance policy; anddetermining a refund based on the amount of losses covered by theinsurance policy and the at least one term of the insurance policy. 16.The method of claim 15 wherein the player tracking device comprises aplayer tracking card.
 17. A method comprising: determining a playeridentifier; determining whether an insurance policy is active inassociation with the player identifier; transmitting gambling resultsfor the player from a gaming device to a network server; determining anamount of losses associated with the gambling results; determining howmuch of the amount of losses are covered by the insurance policy; anddetermining a refund based on the amount of losses covered by theinsurance policy and terms of the insurance policy.
 18. A computerreadable medium comprising software adapted to: determine a playeridentifier; determine whether an insurance policy associated with theplayer identifier is active; transmit gambling results for the playerfrom a gaming device to a network server; determine, at the networkserver, an amount of losses associated with the gambling results;determine how much of the amount of losses are covered by the insurancepolicy; and determine a refund based on the amount of losses covered bythe insurance policy and the terms of the insurance policy.